Earnings Preview:
Names expected to report this week include:

Monday, Dec. 17:
After:  SCHN
Others: BLUD, LWSN, QMED

Tuesday, Dec. 18:
Before:  AYI, CYCL, STZ, CMOS, FDO, GAP, GBX, KBH, NUHC, RPM, SVU
After:  APOL, EXFO, INTV, OXM, XRTX

Wednesday, Dec. 19:
Before:  EMMS, HEE, MERX, MOS
During:  TONS
After:  AA, ETP, RBN, RT, WDFC

Thursday, Dec. 20:
Before: CRAI, MTB, MTRX, MTG, MSM
After:  CAMP, IHS, SHFL, SNX, PAY

Friday, Dec. 21:
Before:  INFY
After:  HALO

IMPORTANCE NOTICE:

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All my best,
Toni Hansen

Toni's Play of the Week:

Safeco Corporation (SAF) operates as a property and casualty insurance company in the United States. It operates through four segments: Safeco Personal Insurance, Safeco Business Insurance, Surety, and Property and Casualty Other. Since peaking at highs in early 2007, SAF began to steadily gain momentum on the downside. During the second half of the year it has shown congestion, while still displaying a downside bias. I am anticipating a breakdown where the momentum increases once more and surpasses the selling which took place over this past summer. My target zone is $40 over the next 6 months.

Other stocks to watch:
Long: EDU (shorter term position), TRX
Short: CTAS, QCOM, CB, PLL, LANC, RJF, WTR

Market Overview: As many of you have seen from my commentary over the past several months, my larger market bias has bearish into 2008.  While I have given some longs in previous letters, all have come with the desire for longer corrections before they trigger. This continues to be my stance at this time and I am continuing to be very aggressive when dealing with longs presently and I have been easing out of many of my longs since this past summer.
Positions in green have triggered and are profitable. Positions in red have triggered but are not yet profitable. Those in blue have not yet triggered.


12/17/2007 Frontline, Ltd. (FRO), through subsidiaries, engages primarily in the ownership and operation of oil tankers, including oil/bulk/ore (OBO) carriers. After correcting off 2004 highs for several years, FRO has begun to turn around over the last two years. It rallied strongly during the first half of 2007 and has had two major correction off the summer highs. I will be watching this over the next 6 months for the congestion along these highs to hold and for a slower pullback/correction to form now as it hits the third test of the year's highs. This is another that may take a bit of time to form. Ideally the volume will drop off as it congests, but everything is lining up very nicely for continued upside next year. The sharp rally last month was a strong change in the momentum and a weekly chart such as this will give it nice potential into about $70 once the range gives way.

12/10/2007 Hospira, Inc. (HSP) engages in the development, manufacture, and marketing of specialty injectable pharmaceuticals and medication delivery systems that deliver drugs and intravenous (I.V.) fluids in the United States and internationally. It has recently broken higher out of a monthly trading range after two waves of pullback since 2006 highs and a more narrow range throughout most of this year in which the monthly pattern was repeated on the weekly time frame. While the daily is less-than-ideal at this point, the upside on this is still rather substantial. It has an initial resistance level between $48-$50 and a larger potential target of $60+, so I will be building a position in HSP over the next couple of weeks to months.

Other stocks to watch:
Long: TK, FRO (similar pattern as HSP) , BCR, GEF, GIB, EWW (remove from watch)

12/3/2007 I am very cautious at present in terms of entering new positions at this time. Many of them I am watching I expect could take several more months to develop. One such setup is Ameren Corp.  (AEE). Ameren Corporation, through its subsidiaries, operates as a public utility holding company in Missouri and Illinois.  It has moved back and forth in a nice trading range on the weekly and monthly time frames, as well as the daily. While it may be too early to break strongly on the monthly time frame, it is a position I expect to increase in momentum once the upper end of this larger range breaks. We may see it attempt to do so still in the next month or so, but otherwise it may rest for a longer base to congest along the highs of the range before it gives way.


Other stocks to watch:
Long: SGP remove from watch

11/26/2007 Greif, Inc. (GEF) engages in the manufacture and sale of industrial packaging products, and containerboard and corrugated products worldwide.  Back in 2005-2006 GEF had a very strong consolidation at its 52-week highs. In late 2006 it broke sharply out of that trading range into the end of the year. Since that point, however, it has fallen into yet another trading range at highs. Over the next couple of months I'll be monitoring GEF for more gradual corrections off the upper end of this range on light volume to begin building a position. I am looking for a break higher in GEF in mid-2008. This is a little premature at this point, but given the current market, most setups on the long side are going to need to take a bit more time to develop in order to qualify as much of anything other than a swingtrade or several week hold. (Early trigger on Nov. 28.)

Other stocks to watch:
Long: BFAM, FFG, PCH Remove these from watch list. Those using aggressive triggers stopped out, SVNT (early trigger on Nov. 28 - This is now too late unless caught on the early trigger), MGLN

11/12/2007 Cintas Corporation (CTAS) provides specialty products and services, such as corporate identity uniforms, to various businesses in the United States and Canada. CTAS recently broke lower out of a descending triangle. I am expecting a move in CTAS into about $20. The current price location is not ideal on a daily time frame, so a bear flag or such on that chart would be worth watching for a lower risk entry trigger. $39. is resistance. (Higher risk entries available for those building a position already beginning at the $34 zone.)

Other stocks to watch:
Long: ADM gave an initial buy trigger on 11/12/2007 over $37. It has highs so far of $47.33 (+$10.33, +27.92%).
Short:
WFC gave a swingtrade type of short setup on 1/2/2008 under $29.75, but has not corrected long enough for a larger time frame setup, so those position trading would ideally treat at least part of the position as a swing to protect gains on that time frame and hold remaining for larger targets. It has lows of $26.99.
LLY gave a short setup on 12/31/2007 under $53.71. It has lows of $51.68.

11/5/2007 Magellan Health Services, Inc.  (MGLN) gave an initial buy trigger on 11/5/2007 over $46.08. It has highs so far of $49.25 (+$3.17, +6.88%). This stock may easily congest or pullback now for several months, so consider that a current risk for those looking to hold long-term since the monthly trigger was a bit early on this one.

10/22/2007Comstock Resources, Inc. (CRK) CRK is a company that has been making new highs once again over the past week, moving steadily higher on a daily uptrend. This makes it less-than-ideal as a new position trade at this time. What does catch my attention, however, is the fact that CRK broke free from a choppy 2-year base at highs over the last two months. Often an initial upsurge will be followed by a retracement back into that earlier congestion zone. It is this potential that I will be watching for in the next couple of months to initiate a buy for a continuation. This pattern will take some time to develop and any move to new highs without that weekly-monthly correction would be on a swingtrade basis only, and not a position trade. For more information, please refer to October 22nd's Position Trade Newsletter.

Other stock to watch:
Long: NDS Group (NNDS) gave an early buy trigger on 11/28/2007 over $56. It has highs so far of $63.57 (+$7.57, +13.52%). May still correct more on the weekly time frame.

10/8/2007 TheStreet.com Inc. (TSCM) gave an initial buy trigger on 10/8/2007 over $13.44. It has highs thus far of $16.74 (+$3.30, +24.55%). It now is likely to correct on the daily time frame and possibly the weekly time frame. A gradual correction will provide a lower risk opportunity to enter this position or add to it.

10/1/2007 Pain Therapeutics, Inc. (PTIE) gave an initial buy trigger on 10/1/2007 over $9.58. It has highs so far of $11.50 (+$2.16, +20.04%).  Initial targets hit. Some trailing stops hit into the New Year.

9/24/2007 Martek Biosciences Corp. (MATK) gave an initial buy trigger on 9/24/2007 over $28.84. It has highs so far of $31.00 (+$1.75, +7.49%).

9/24/2007 Bard C R Inc. CR (BCR) gave an "early" buy trigger on 9/26/2007 over $87.46 (considered a high risk entry). It has highs so far of $95.33 (+$7.87, +9%). A lower risk entry will be to wait for a pullback to buy on the weekly time frame. 9/10/2007 Cheesecake Factory Inc. (CAKE) gave an initial short trigger on 9/10/2007 under $24.07. It has lows so far of $19.70 (+$4.37, +18.16%). Can still be watched for a secondary setup on the monthly time frame. CAKE is boucning on the daily time frame as anticipated.

9/10/2007 Automatic Data Processing Inc. (ADP) gave a short setup on 9/10/2007 under $44.61. It has lows of $40.77 (+$3.84, +8.61%).

9/10/2007 International Rectifier Corp. (IRF) gave a short setup on 9/10/2007 under $33.23. It has lows of $29.55 (+$3.68, +11.07%).

9/10/2007 Newmont Mining Corp. (NEM) gave a buy setup on 9/11/2007 over $44.79. It has highs of $56.35 (+$11.56, +25.81%). Most trailing stops hit.

9/10/2007 Goldcorp Inc. New (GG) gave a buy setup on 9/11/2007 over $26.44. It has highs of $38.55 (+$12.11, +45.80%).

8/13/2007 Iron Mountain Incorporated (IRM) gave a continuation buy setup on 8/31/2007 at $28.14. It has highs so far of $38.16 (+$10.02, +35.61%). Some trailing stops hit.

8/6/2007 Chesapeake Energy Corporation (CHK) gave an initial setup on 8/31/2007 over $32.06, but it can still have one more flush left in it on the monthly time time. It has highs of $41.191 (+$9.13, +28.48%). Initial targets hit. Some trailing stops hit.

5/21/2007 Saks Incorporated (SKS) may or may not have triggered, depending upon the entry strategy employed. If triggered, the entry was over $22.80. A few trades went off at that level to trip most stop buy orders. It has highs of $23.

5/14/2007 The Toronto-Dominion Bank (TD) gave a buy setup on 5/14/2007 at $62.89. It has highs so far of $77.63 (+$14.74, +23.44% move). Targets hit. Some trailing stops hit.

5/7/2007 Universal Health Services, Inc. (UHS) Two potential entries to day: May 7th ($61.87) and May 21st ($60.21) over the previous day's highs. Target: $90-$100. Tight trailing stops hit. Long term stops under 2005 lows.

4/16/2007 Pepsico Inc. (PEP) gave buy setup on 4/16/2007 over $64.59. Highs so far of $79.00 (+$14.41, +22.31% move). Some trailing stops hit.

12/4/2006 ConocoPhillips (COP) gave a buy setup on 12/5/2006 over $67.66. This was a higher risk setup due to the lack of a weekly base. It reached highs of $90.84 (+$23.18, +34.26% move) so far. Some trailing stops hit.

12/4/2006 Questar Corp. (STR) gave a buy setup on 12/4/2006 over $43.65. This was a higher risk setup due to the lack of a weekly base. It reached highs of $58.75 (+$15.10, +34.59% move) so far. Targets hit. Some trailing stops hit.

12/4/2006 Chesapeake Energy Corp. (CHK) gave a buy setup on 2/23/2007 at $30.08. It reached highs of $41.19 (+$11.11, +36.93% move) so far. Initial targets hit. Some trailing stops hit.

11/6/2006 KT Corp. (KTC) gave a cont. buy setup on 11/7/2006 over $23.44. It hit highs of $30.24 (+$6.80, +29.01% move) so far. Adjusted stop under $22.50 on remaining.

10/30/2006 AGCO Corp. (AG) gave a buy setup on 11/1/2006 over $27.68. It hit highs of $71.95 (+$44.27, +159.93% move) so far. Targets hit. Some trailing stops hit.

9/11/2006 Sigma Aldrich Corp. (SIAL) gave a buy setup on 9/15/2006 over $36.82. It hit highs of $56.59 (+$19.77, +53.69% move) so far. Targets hit. Some trailing stops hit. Tight trailing stops.

8/7/2006 Stericycle, Inc. (SRCL) gave a buy setup on 9/20/2006 over $34.00. It has highs of $62.56 (+$28.56, +84% move).. Targets hit. Tight trailing stops.

7/24/2006 Allegheny Energy Inc. (AYE) gave an initial watch list buy setup on 7/24/2006 at $39.89. It has highs of $65.48 (+$25.59, +64.15% move). The 20 week sma is support. Some trailing stops hit.

7/17/2006 Williams Cos. Inc. (WMB) gave a watch list buy setup on 7/24/2006 over $23.29. It has highs of $37.74 (+$14.45, +62.04% move). Some trailing stops hit.

3/27/2006 Berkshire Hathaway, Inc. (BRK.B) gave a breakout on 5/16/2006 over $3000. It has highs of $5059.00 (+$2059, +68.63% move). Some trailing stops hit.

* DISCLAIMER: Results are based upon best price hit before the position was closed, or the stop if that hit first. Note: Trading in commodities and securities may not be suitable for all individuals. Consult your broker or other professional to determine your suitability. The discussions provided by Trading From Main Street are for educational purposes only and should not be taken as a recommendation to buy or sell the referenced security. Past performance is not indicative of future results.

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